Correlation Between XinJiang GuoTong and Anhui Deli
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By analyzing existing cross correlation between XinJiang GuoTong Pipeline and Anhui Deli Household, you can compare the effects of market volatilities on XinJiang GuoTong and Anhui Deli and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in XinJiang GuoTong with a short position of Anhui Deli. Check out your portfolio center. Please also check ongoing floating volatility patterns of XinJiang GuoTong and Anhui Deli.
Diversification Opportunities for XinJiang GuoTong and Anhui Deli
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between XinJiang and Anhui is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding XinJiang GuoTong Pipeline and Anhui Deli Household in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Deli Household and XinJiang GuoTong is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on XinJiang GuoTong Pipeline are associated (or correlated) with Anhui Deli. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Deli Household has no effect on the direction of XinJiang GuoTong i.e., XinJiang GuoTong and Anhui Deli go up and down completely randomly.
Pair Corralation between XinJiang GuoTong and Anhui Deli
Assuming the 90 days trading horizon XinJiang GuoTong Pipeline is expected to generate 0.94 times more return on investment than Anhui Deli. However, XinJiang GuoTong Pipeline is 1.06 times less risky than Anhui Deli. It trades about 0.0 of its potential returns per unit of risk. Anhui Deli Household is currently generating about -0.01 per unit of risk. If you would invest 1,061 in XinJiang GuoTong Pipeline on September 1, 2024 and sell it today you would lose (155.00) from holding XinJiang GuoTong Pipeline or give up 14.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
XinJiang GuoTong Pipeline vs. Anhui Deli Household
Performance |
| Timeline |
| XinJiang GuoTong Pipeline |
| Anhui Deli Household |
XinJiang GuoTong and Anhui Deli Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XinJiang GuoTong and Anhui Deli
The main advantage of trading using opposite XinJiang GuoTong and Anhui Deli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XinJiang GuoTong position performs unexpectedly, Anhui Deli can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Anhui Deli will offset losses from the drop in Anhui Deli's long position.| XinJiang GuoTong vs. Industrial and Commercial | XinJiang GuoTong vs. Agricultural Bank of | XinJiang GuoTong vs. China Construction Bank | XinJiang GuoTong vs. Bank of China |
| Anhui Deli vs. Industrial and Commercial | Anhui Deli vs. China Construction Bank | Anhui Deli vs. Bank of China | Anhui Deli vs. Agricultural Bank of |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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